Cathode active material plant in Kotka strengthens the growth of Finland’s battery cluster – Finnvera guarantees a EUR 200 million loan

The Chinese battery materials manufacturer Easpring, together with Finnish Minerals Group, is investing in a new cathode active material (CAM) plant in Kotka, Finland, to produce raw materials for battery cells. The total investment for the plant amounts to EUR 844 million. Finnvera has granted a financing guarantee for a EUR 200 million loan.

The plant is due to start operations in 2026, begin commercial production in 2027 and produce 60,000 tonnes of cathode active material per year.

Easpring, officially Beijing Easpring Material Technology Co. Ltd., will own 70 per cent of the plant. Finnish Minerals Group Oy, which is owned by the State of Finland, will own 30 per cent.

This represents a significant industrial-scale investment from China to Finland, as no comparable technology currently exists in the country.

The battery industry is crucial for the green transition and, for example, the electrification of transport. Finland’s goal is to build an entire domestic value chain from raw materials to actual battery production.

“With our guarantees, we enable major investments to be carried out in Finland and we cooperate closely with other state actors. Our aim is to foster growth and the creation of new businesses. The cathode material plant in Kotka is a major green transition project and part of the broader value chain Finland aims to develop,” says Finnvera’s Senior Adviser Miska Kuhalampi.

Significant economic impacts locally and nationally

The project received its environmental permit in October 2024, and the Finnish Safety and Chemicals Agency (Tukes) granted the plant a chemical safety permit in 2026.

During construction, the plant will employ 800–1,000 people. According to the company’s own estimates, once operational, the plant will directly employ around 270 people, and its indirect employment effects could amount to as many as 3,000 person‑years in the future.

As both direct and indirect impacts are taken into account, the long-term effect on the regional economy of Kymenlaakso and on Finland’s national economy will be substantial and positive.

Further information:

Miska Kuhalampi, Senior Adviser, Finnvera, tel. +358 29 460 2806